Exam 3: Measuring Business Income: Adjusting the Accounts

The income statement for Catlett Company included the following revenues and expenses for 20x5: Listed below are the related balance sheet account balances at year end for this year and last year: a.Compute cash received for fees during the year. b.Compute cash paid for wages during the year. c.Compute cash paid for insurance during the year. d.Compute cash paid for interest during the year.

Which of the following pairs of accounts could possibly appear in the same adjusting entry?

A company's fiscal year need not correspond to the calendar year.

Which of the following is not a condition required by the SEC for the recognition of revenue?

Which of the following accounts would be found on the debit side of the adjusted trial balance?

The carrying value of a depreciable asset purchased 3 years ago equals

An adjusting entry would not include which of the following accounts?

Which of the following is not one of the conditions for recognition of an expense?

What is the adjusting entry for that portion of revenue received in advance which has now been earned?

Answer the following questions.(Show your work. ) a.Revenue of $60,000 was earned,but only $45,000 was collected.Expenses of $36,000 were incurred,but only $30,000 was paid.What is reported net income? b.Wages of $4,000 are paid every Friday for a five-day workweek.If the end of the year falls on a Tuesday,the adjusting entry for wages would be recorded at what amount? c.A company vehicle is purchased for $24,000.Assuming an eight-year useful life and zero value at that time,what is the balance of accumulated depreciation after five years? d.Supplies Expense of $3,600 was recorded for a given year.Assuming that $2,400 in supplies were purchased during the year and that $640 in supplies remained at year end,what was the cost of supplies at the beginning of the year?

The principal difference between depreciation expense and most other types of expenses is that

An adjusted trial balance proves the balance of the ledger accounts after the adjusting entries have been posted.

Which of the following transactions does not result in an increase in expenses?

Which of the following accounts probably would not appear in a trial balance but probably would appear in an adjusted trial balance?

Which of the following situations is not an example of a deferral?

Joan Miller is the President of an advertising agency.One of the adjustments a staff accountant made at the end of July was $360 for unpaid wages of the secretary.Joan Miller might ask,"Why go to the trouble of making this adjustment? Why worry about it? Doesn't everything come out in the end,when the secretary is paid in August? Because wages expense in total is the same for the two months,isn't the net income in total unchanged?" Give three reasons why adjusting entries can help Joan Miller assess the performance of the business.(Net income was $1,600. )

Custom Enterprises had supplies on hand costing $3,840 at the beginning of the year and $4,800 at the end of the year.During the year,supplies totaling $7,600 were consumed.How much was the total cost of supplies purchased during the year?

Unearned Revenue was $600 at the end of February and $750 at the end of March.Service Revenue was $3,600 for the month of March.How much cash was received from revenue during March?

A revenue for which the service has been performed but that has not been recorded is a deferred revenue.

Which of the following is an example of an accrual?